APUSH - Great Depression

Andrew Mellon

Laissez-faire Treasury Secretary under Harding

Warren Harding

GOP President who favored laissez-faire policy

Laissez-faire

Policy of minimal economic intervention by the govt

Companies created during the 1920s

Disney, Lowe’s, NFL, AMC and others

Services for Veterans following WW1

Veterans’ Bureau (Harding) and American Legion

Adjusted Compensation Act

Lump sum provided to veterans of WW1 20 years post based on time in service

Plight of farmers

25% of farmers fail post WW1, overproduction

McNary-Haugen Bill

Failed bill that would have govt buy produce & tax farmers to aid with downturns

Tariff policy of Harding, Coolidge and Hoover

Promoted tariffs believing they would aid American business

Smoot-Hawley Tariff

Second largest tariff in US history, alleged to have worsened the Great Depression

Effects of high tariffs in 20s

Led to “race” of increasing tariffs, shutting off much global trade

How did automation affect the economy during the 20s?

It reduced jobs, providing less room for the unemployed to “fall back” on.

How did drought affect the Southern plains in the 1930s?

It created the “Great Dust Bowl”. This was caused by fertilizer used in WW1 and overexpansion in this area.

What should you be reading alongside the flashcards?

The textbook.

Buying on the margin

Risky practice of buying using borrowed money, helped contribute to the Great Depression

1928 election

Herbert Hoover vs. Al Smith

Herbert Hoover

Orphan, went to Stanford, became millionaire, US Food Admin and later President

Al Smith

Gov of NY, anti-Prohibitionist and first Catholic nominee, lost in part due to this. Relied on radio heavily

Ohio Gang

Group of corrupt Harding officials

Members of Ohio Gang

Albert Fall (Interior), Harry Doughty (AG), Charles Hughes (Sec of State)

What was the Supreme Court’s ideological leaning during the 1920s?

It took a right wing turn after Harding nominated 4 justices, overturning progressive laws and cases like Muller (later leading to conflicts with FDR)

Esch-Cummins Transportation Act

Privatized railroads post WW1, laissez-faire

Merchant Marine Act

Privatized US shipping post WW1, laissez-faire

Who advocated for veterans post WW1?

The American Legion was a major force for veterans post WW1, especially in advocation of a lump sum

What was US foreign policy in the 1920s generally?

The US pursued an isolationist foreign policy, not interacting with the League of Nations under GOP rule

Five-Power Treaty

Capped Br-Fr-US-JP-IT navies in unequal ratios

Nine-Power Treaty

Affirmed open-door note policy to China

Kellog-Briand Pact

Underlined post-WW1 idealism, pact vowing to end non-defensive war

What were the effect of tariffs on the economy during the 20s?

Large tariffs slowed trade and contributed to the eventual Great Depression

Fordney-McCumber Tariff

High tariff passed under Harding, angered Europeans

Teapot Dome Scandal

Int Sec. Fall leases federal land w/ oil to Harry F. Sinclair & Edward L. Doheny

Calvin Coolidge

Quiet man and traditional GOP President during 20s

1924 Election

“Keep Cool” vs. Conservative Dem John Davis & Progressive Robert La Follette, represents satisfaction under laissez-faire GOP

Why did Americans shift away from progressivism during the 1920s?

Americans became satisfied with the booming economy during the 1920s and wanted to move on past the “Great War”.

Why were tariffs considered pro-business?

Tariffs were considered to reduce foreign competition to American companies, strengthening domestic production

How did lending risk affect the rise of the Depression?

Americans were uninformed about the credit they were receiving, which created a market built on risky investments that tumbled.

How did the Teapot Dome represent the 1920s in some ways?

The Teapot Dome represented the 1920s because it showed the corruption underneath the surface of the government and economy, ignored by Americans.

La Follette Seaman’s Act

Improved US seamen conditions but made US shipping less competitive

How did the Five Power Treaty help Japan in WW2?

It allowed the Japanese (but not the US, Br, Fr, or IT) to fortify their overseas possessions, making the Japanese hard to remove from the Pacific

European reactions to US tariffs

Europeans were resentful of US tariffs that prevented them from in part paying back their loans to the US and weakened their economic growth

Washington Conference

US meeting w/ nations aside from USSR on disarmament & China (Four, Five)

What was Hoover’s policy in response to the Great Depression?

Hoover compromised his laissez-faire policy to promote generalized aid, particularly in terms of loans

Dawes Plan

US loaned to Germany for rebuilding, who paid FR and UK, who paid the US criticized as “merry-go-round”

Agricultural Marketing Act

Aided farmers through marketing co-ops and creation of a Farm Board to lend (pre-Depression, Hoover)

Black Tuesday

Stock market crash caused in part by overspeculation and Britain raising interest rates (Oct, 1929)

Why did the Great Depression occur?

Overproduction during the 1920s and too little purchasing power of the ordinary citizens led to a “glut” and crash + Risky credit

Hooverville

Shantytown during Great Depression

Home Loan Bank Bill

Example of Hoover policy, promoted govt support to lenders to prevent foreclosure

How did Hoover pave the way for the New Deal?

His programs, though not as large as Roosevelt’s, helped change conceptions of government intervention

Reconstruction Finance Corporation

Hoover policy, lent to govts and corporations

Norris-LaGuardia Injunction Act

Pro-union bill under Hoover, protected unions as a right and prevented courts from ending strikes, pickets

“Bonus Expeditionary Force”

March of soldiers on Washington for promised bonuses, dispersed by Hoover, leading to resentment

Japanese seizure of Manchuria

The Japanese take advantage of the Great Depression and invade Manchuria, flouting League rules

Stimson Doctrine

Doctrine in response to Manchurian invasion, says US won’t recognize territories seized by force

Good Neighbor Policy

Policy under Hoover of withdrawal from Latin America and improving relations

Who led the breakup of the Bonus Exp. Forces?

General Douglas MacArthur (future WW2)

1930 Election

Herbert Hoover soundly defeated by FDR in states & vote, rising tide of “change”.

What did FDR conceal?

FDR had a physical disability and could not walk unsupported, considered by modern historians to be polio

Eleanor Roosevelt

Progressive, tall and most involved First Lady — popular with progressives

Brain Trust

Group of FDR advisers who wrote policy and speeches, college intellectuals

Hundred Days (1933)

100 day period following FDRś inauguration of swift action and Congress delegating many powers unconstitutionally to the executive

What reveals the New Deal as being a product of trial and error?

FDR’s original promise of a balanced budget, followed by heavy deficit spending to cure the Depression

Why were black defections to Democrats in 1932 vital?

It began the alignment of minorities with the Democrats on economic issues

What are the three R’s of the New Deal?

Relief, recovery, reform

Civilian Conservation Corps

New Deal organization that put young men into conservation work

Emergency Banking Relief Act

Congress closed the banks and gave the President power to reorganize them (FDR)

Glass-Steagall Act

Creates the FDIC, regulates banks to prevent future failures

Why did FDR end the domestic gold standard?

To increase inflation and spur economic activity.

Federal Emergency Relief Act

Provided for immediate “relief” of Great Depression and created FERA, giving direct payments and wages to Americans

Home Owners Loan Corporation

Provided loans to prevent foreclosures on homes

Civil Works Administration

New Deal program dedicated to providing temporary relief and jobs, particularly in infrastructure (temporary, under FERA)

Why was the CWA criticized?

Some thought it took minimal work to get a wage at the CWA and was a “handout”.

Harry L. Hopkins

Energetic but sickly leader of FERA

How did some of the Hundred Days legislation backfire?

The Supreme Court later invalidated part of it due to the overwhelming powers it gave to the Presidency

Populists during the Depression

Huey Long (Gov of LA), Father Coughlin

Who was Huey Long?

Populist Governor of LA, promised to give every American 5k, known for “Every Man A King”

Who was Father Coughlin?

A Catholic priest who became a famous radio host, successfully rallying enough Americans against joining the ‘World Court’ in an appeal to the Founding Fathers

Public Works Administration

New Deal program under FERA to build infrastructure and revive the economy

“Forgotten man”

The appeal of FDR’s campaign during the Depression

Frances Perkins

First female cabinet member under FDR, Sec of Labor

Mary McLead

Highest ranking African-American in FDR’s admin, led the Office of Minority Affairs in NYA

National Youth Administration

Provided jobs to American youth

National Recovery Administration

Focused on long term recovery and reform — criticized for extensive labor regulation (later struck down)

Schechter decision

Struck down parts of 100 Day legislation that granted “legislative powers” to FDR, like the NRA

Public Works Administration

Dedicated to infrastructure & long term recovery under FDR

Harold L. Ickes

Led the PWA, brash fmr. bull mooser

How did the New Deal invest in infrastructure?

One example of infrastructure investment is the Grand Coulee Dam, which provided irrigation water and electricity along the Columbia River (success)

What were some criticisms of the New Deal?

Hoover and other conservatives believed it went against the spirit of rugged individualism and lavishly spent govt. money.

What is one example of New Deal “waste”?

Conservatives criticized the New Deal for schemes such as funding the counting of crickets in Wyoming by Alphabet Agencies

Alphabet Agencies

Term for New Deal bureaucracy, like the PWA or NRA

What were the causes and effects of Prohibition’s repeal?

It was caused by growing dissatisfaction with the rise in organized crime and spurred economic growth during the Depression

What repealed Prohibition?

The 21st Amendment, 1933

Federal Housing Administration

Increased housing production under FDR, reduced slums

Social Security Act

It established Social Security, but was restricted to certain industries

National Labor Relations Act (Wagner Act)

Established NLRB (enforces labor laws)

John L. Lewis

Led the CIO and broke off from the AFL, pioneered sit-down technique in US strikes

Memorial Day Massacre

Shooting of strikers by cops during Great Depression

Fair Labor Standards Act

Required minimum wage and maximum hours in industries involved with nterstate commerce

Election of 1936

FDR v. Alf Landon (moderate) total landslide for FDR

Alf Landon

GOP nominee in 1936, moderate who sought to pull back New Deal, Kansas Governor and fmr TR supporter